Evolution and Challenges of Environmental, Social, and Governance Practices: An Analysis of the Brazilian Stock Exchange’s Corporate Sustainability Index

Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies list...

Full description

Saved in:
Bibliographic Details
Published in:Sustainability 2024-08, Vol.16 (15), p.6531
Main Authors: Paranhos, Maria Aparecida Hess Loures, Nääs, Irenilza de Alencar, Neto, Pedro Luiz de Oliveira Costa
Format: Article
Language:English
Subjects:
Banking industry
Brand equity
Climate change
Consumer behavior
Corporate sustainability
Electric utilities
Energy industry
Environmental sustainability
Marketing research
Retail industry
Securities industry
Social responsibility
Stock exchanges
Stock-exchange
Stocks
Sustainability
Toiletries industry
Citations: Items that this one cites
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Environmental, social, and governance (ESG) practices are increasingly recognized as critical for corporate sustainability and market competitiveness, driven by heightened expectations from investors, governments, and consumers. This study examines the evolution of ESG practices among companies listed on the Brazilian Stock Exchange’s Corporate Sustainability Index (ISE B3) from 2005 to 2022. We analyzed the index portfolio’s composition, focusing on changes in ESG dimensions over time. The only six long-lived companies in this index, from retail, banking, and energy sectors, were selected for in-depth analysis. We further evaluated the quality and consistency of ESG disclosures in company reports. Findings indicate relevant fluctuations in the number of companies included in the ISE B3 and variations in ESG scores for the companies. These variations may be attributed to the voluntary nature of ESG practices and the absence of standard disclosure. This study reveals a lack of homogeneity in ESG reporting, which could be addressed by establishing more straightforward guidelines and global standards. This research underscores Brazilian companies’ challenges navigating diverse ESG frameworks to align with evolving societal and environmental expectations.
ISSN:2071-1050
2071-1050
DOI:10.3390/su16156531